Wednesday, 28 February 2024
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Bitfinex Securities announces $5M tokenized bond on Liquid Network

Bitfinex Securities announces $5M tokenized bond on Liquid Network

  • Bitfinex Securities says the $5.2 million tokenized bond is the first in the microcredit industry. 
  • The Tether (USDT)-denominated bond was issued on Liquid Network.

Bitfinex Securities has announced that it successfully raised $5.2 million in one of the world’s first tokenised bonds. The raise was by Alternative, a securitization fund under microfinancing platform Mikro Kapital.

The platform issued the tokenised bond on the Liquid Network, a Bitcoin layer 2 solution enabling the issuance and settlement of digital assets such as security token offerings.

According to Bitfinex Securities, the USDT-denominated bond ALT2612 has a 36-month tenor and 10% coupon. 

This proof of concept is more than just a fundraise; it’s a significant stride towards integrating USDt in the microfinancing industry,” Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, said in a statement published in a blog post.

He added: “Our ongoing challenge is to bridge the gap between traditional and crypto investors, educating them about the mutual benefits of high-quality securities and tokenisation. Mikro Kapital’s role in this endeavor is indispensable.”

Mikro Kapital and Bitfinex Securities partnership

Mikro Kapital and Bitfinex Securities recently agreed to a partnership that would see the two companies explore asset tokenization. The agreement also included plans to bolster the adoption of Tether stablecoins USDT and EURT across the microfinance industry.

Commenting on their partnership and the recently closed raise, Vincenzo Trani, President and founder of Mikro Kapital, said:

The success of our first tokenized bond issue was made possible thanks to the constant technical support and the extensive network of investors of Bitfinex Securities. We are excited to be pioneers in bringing cryptocurrency to the world of microfinance. This will allow us to respond efficiently and quickly to the needs of small entrepreneurs.”

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